How to Make Jade Lizard Adjustments | Options Trading Concepts
HTML-код
- Опубликовано: 12 апр 2016
- Subscribe to our Second Channel: @tastylivetrending
Check out more options and trading videos at www.tastylive.com!
======== tastylive.com ========
tastylive is a real financial network, producing hours of live programming every day. Follow along as our experts navigate the markets, provide actionable trading insights, and teach you how to trade. With over 120 original segments, and over 25 personalities, we’ll help you take your trading to the next level, whether you are new to trading or a seasoned veteran.
Follow us on Twitter: tastyliveshow
Check out our Instagram: tastyliveshow
tastylive content is created, produced, and provided solely by tastylive, Inc. (“tastylive”) and is for informational and educational purposes only. It is not, nor is it intended to be, trading or investment advice or a recommendation that any security, futures contract, digital asset, other product, transaction, or investment strategy is suitable for any person. Trading securities, futures products, and digital assets involve risk and may result in a loss greater than the original amount invested. Investment information provided may not be appropriate for all investors and is provided without respect to individual investor financial sophistication, financial situation, investing time horizon or risk tolerance. Options, futures, and futures options are not suitable for all investors. Prior to trading securities, options, futures, or futures options, please read all applicable risk disclosures, including, but not limited to, the Characteristics and Risks of Standardized Options Disclosure(www.theocc.com/company-inform...) and the Futures and Exchange Traded Options Risk Disclosure Statement(assets.tastyworks.com/product....
Past performance is not indicative of future results. Performance is not presented net of all commissions, fees, and expenses. Multi-leg option strategies incur higher transaction costs than single leg trades as they involve multiple commission charges. Examples provided are for illustrative, informational, and educational purposes only and are not intended to be reflective of results you can expect to achieve. Supporting documentation for any claims (including claims made on behalf of options programs), comparisons, statistics, or other technical data, if applicable, will be supplied upon request.
tastylive, through its content, financial programming or otherwise, does not provide investment or financial advice or make investment recommendations. tastylive is not a licensed financial adviser, registered investment adviser, or a registered broker-dealer.
tastytrade, Inc. (“tastytrade”) has entered into a Marketing Agreement with tastylive whereby tastytrade pays compensation to tastylive to recommend tastytrade’s brokerage services. The existence of this Marketing Agreement should not be deemed as an endorsement or recommendation of tastylive by tastytrade. tastytrade and tastylive are separate, but affiliated, entities with their own products and services. tastylive is the direct parent company of tastytrade.
**Breakeven price in "Stock Moves Up" example @ **7:50** should be 71.67, as we have now moved the short put up!**
Man, I love that point about redeployment to take advantage of an increase in vol. Great observation!
Thanks for the video.
Any chance of a demo account to practice these and learn with paper trades?
In the second example if the price goes up and u buy a call at 78,and the final price is 79,u also make 1dollar profit
is this equivalent to a strangle with heding on just one end?
Yep!
Are there any advantages to a Reverse Jade Lizard? When would I use one over the other?
Reverse jade lizard is normally used in underlyings with REVERSE volatility skew, where calls are trading more rich than equidistant puts. Same concept applies, just a bearish assumption.
@@tastyliveshow yeah, but your selling a naked call, right? This means unlimited upside risk.
@@KristoferKrause you could sell it as a covered call at a price your okay with exiting a stock at, if everything is ends up expires otm or if you close early you can repeat, is it gets assigned your offing your sales at your exit price + the premium youve collected is a bonus
if you rollup SP to 73 B/E is 71.67 and not 68.67
You are correct! I adjusted this in the slides that you can download on tastytrade - I will add a comment in the description here. Sorry about any confusion!
I believe max loss will be bigger than the number in the slide if the short put is moved to 73.
At 03:00, how come Max Loss is going to be $6897 on the downside even stock goes to 0. I think its incorrect. Max loss is Unlimited on downside.. Right. Please explain.
His average cost per share is $68.97 as per share for $70.00 you subtract the premium of $1.03 per share. Therefore for all shares your average cost is $6,897.00, therefore if the stock goes to 0 you lose all of that value
It's always "roll for a credit" with you guys. There is no shame in buying options when the market allows you to reduce risk at a good price. It is a perfectly reasonable adjustment to buy an OTM put on a rally to complete the condor. You might be able to do so for a net of zero or even a credit.
That's not out of the realm of possibility - but if I only collect $1.10 on a jade lizard that has a $1 wide call spread, I can't pay more than $0.10 to buy that put. If I do, I add risk to the upside and now I've turned my would-be successful trade into a losing trade if the stock doesn't drop.